SYDNEY: Challenger Limited (ASX:CGF) announced today that Dai-ichi Life Holdings, Inc., through its Australian subsidiary TAL Dai-ichi Life Australia Pty Limited, has agreed to purchase a 15.1% minority stake in the company from MS&AD Insurance Group Holdings, Inc. The deal, priced at ¥763 per share (approximately A$8.46), represents a 53% premium to Challenger’s closing share price on April 4, 2025.
The transaction is pending regulatory approvals, including clearance from the Australian Foreign Investment Review Board and the Australian Prudential Regulation Authority.
Nick Hamilton, Challenger’s managing director and CEO, welcomed the investment, calling Dai-ichi Life a “global leader in life insurance.” He said the partnership would benefit customers and shareholders while supporting Challenger’s growth strategy.
The sale will not affect Challenger’s reinsurance partnership with MS Primary, a subsidiary of MS&AD, which was renewed last year for another five years. The two companies have collaborated for over a decade, with the arrangement exceeding minimum volume commitments.
Following the sale, Masahiko Kobayashi, MS&AD’s representative on Challenger’s board, will step down.
Challenger, a financial services firm, focuses on retirement solutions for Australians.